"Tuition Discounting" is the revenue strategy
by Trekker (2017-09-12 16:08:34)

In reply to: ND more expensive that Princeton and Harvard!  posted by sylvaniairish

In general, the published tuition price (sticker price / MSRP) is not the average tuition price.

Universities use a process called "tuition discounting" whereby they offset the sticker price with grant aid. The result is the "discount rate", the ratio of total institutional grant aid relative to gross tuition revenues. This all works great so long as students are price inelastic.

There's been concern in higher education that an increasing number of institutions' net revenue has not increased after sticker price increases due to the need for increased discounting.

My assumption is that ND's consultants are still reporting that the applicant pool is price inelastic and that increasing the sticker price will increase net revenue.